KWAZULU-NATAL

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KWAZULU-NATAL TOOLING INITIATIVE
Re-structuring of the South African Tool, Die and
Mould-making Industry
Presented byUmash RamkalawonRegional Programme
Manager KZNTI
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Rehabilitation and growing of the Tool, Die
Mould-making Industry in South Africa
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History of the TDM Sector in SA
Capacity (increasing importsfrom China and
others)
Annual turnover
Sector ratio
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Automotive (7 OEMs)
Mining other
BMW Toyota Nissan Volkswagen General
Motors Mercedes Benz Ford Motor company
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Loss In Local Tooling Manufacturing Capacity
80
40
35
4,6
Packaging consumer goods
1990
2010
EU
Global
SA
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Distress Drivers for the Sector in SA
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Economic Impact of the Tooling Sector in SA

• The tooling sector can be classified as a
  sub-sector under the Metal
  Fabrication, capital equipment and transport
  equipment sector
• High employment and growth multipliers
• Strong backward linkages

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National Intervention in the TDM Sector

• The Tooling Initiatives across SA is guided by
  the intervention programmes set by
  the National Tooling Initiative(NTI) which has
  been incorporated into the DTIs Industrial
  Policy Action Plan IPAP(2013-
  2016) as a key action programme for Capital
  Equipment and Allied
  Services.

Establishment of TDM Cluster Managementstructure
s in 6 provincial locations
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KZNTI Strategic Concept
SUSTAINABLE ECONOMIC GROWTH within the TDM
SECTOR
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KZNTI Intervention Projects
TDM sector skills development
Business capacity expansion
Technology recapitalization
Competitiveness improvement
Cluster structure development
Localisation of international tooling companies
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TDM Sector Skills Development

• TDM Powered Apprenticeship Programme
• Pilot programme developed by industry experts and
  funded by the DTI
• The future tooling qualification

• 526 students at selected FET Colleges across the
  country
• 65 students in KZN
• Level 1
• 20 students in Pmb
• Level 2
• 19 Students in Pmb
• 26 Students in Dbn
• Additional intake of 500 students for 2014

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.continued
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Business Capacity Expansion

• Tooling Incentive Scheme
• Recommended amendments to the current investment
  incentive structure
• of the Automotive Production and Development
  Programme (APDP) and
• the Automotive Investment Scheme(AIS)
• AIS
• Current capital investment incentive structure
  ranges from 20 to 30
• It is proposed that this incentive is offered to
  automotive tooling at a 50
  standard rate
• APDP
• The light vehicle APDP offer's local value
  addition incentives in the form
  of a Production Incentive
  applied for via a Production Rebate Credit
  Certificate
• It is proposed that for tooling local value
  addition, the benefits apply at
  the vulnerable products
  level to provide a significant boost to tooling
  localization.

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.continued

• Rand value of imported automotive tooling used
  for calculations
• are as follows,
• Historic average of R 2, 227 billion per annum
• Forecasted value of R 4 billion per annum

Historic average (R2 227 million) Forecast (R4 000 million)
Additional local value added R 534 000 000 R 960 000 000
Additional AIS for Local tooling (R 107 000 000) (R 192 000 000)
Production incentive (R 75 000 000) (R 128 000 000)
Benefit to SA economy R 353 000 000 R 640 000 000
Benefit as a of VA 66 67
Extra cost to Govt. for VP incentives per annum (R 25 000 000) ( R 38 000 000)
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Competitiveness Improvement

• Business Development and Systems Training

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THANK YOU